PenFed Credit Union Increased Earnings, Capital and Liquidity for 2025

One of America's largest federal credit unions maintains over $2.9 billion in net worth.

TYSONS, Va., Jan. 28, 2026 /PRNewswire/ -- PenFed Credit Union, one of the nation's largest federal credit unions, reported continued capital strength, robust liquidity and solid earnings growth for 2025. PenFed ended the quarter with nearly 2.8 million members, $29 billion in assets and over $2.9 billion in net worth.

"PenFed's 2025 performance delivers on our financial objectives of safety and soundness while providing exceptional service to our members," said James Schenck, PenFed President and CEO. "We continue to strengthen capital, expand earnings, and provide exceptional value through competitive rates and responsible financial solutions. Our results highlight PenFed's ability to navigate any economic environment while remaining focused on empowering members to achieve their financial dreams."

PenFed's 2025 Financial Highlights

Capital and Liquidity Strength

• Increased net worth ratio 47 bps year-over-year, from disciplined capital planning.
• Ended 2025 with over $900 million in capital above the regulatory requirement to be well-capitalized, a 41% increase year-over-year.
• Increased total cash and investments to 15.1% of total assets, up 210 bps year-over-year.

Earnings Growth

• Increased quarter-to-date net income by 36% quarter-over-quarter.
• Achieved full-year net income of $151.0 million, an increase of 316% year-over-year (an improvement of nearly $115 million).
• Improved net interest margin to 3.21%, up 17 bps year-over-year.

Credit Quality and Risk Management

• Improved loan loss rates by 21% year-over-year, reflecting resilient lending strategies and improved credit performance.
• Lowered commercial real estate exposure by 32% year-over-year reflecting prudent risk management and alignment with evolving market conditions.

Loan and Deposit Growth

• Grew auto loan originations (year-to-date) 43% year-over-year to $1.9 billion, driven by strong member demand.
• Completed third prime auto loan securitization offering in September 2025 to support diversification of funding, increasing liquidity and strengthening of net worth.
• Increased home equity line of credit (HELOC) originations by 15% year-over-year to $1.4 billion, as members continued to leverage PenFed's competitive rates.
• Increased non-maturity deposits by 10% year-over-year to $14.9 billion, with continued growth in premium online savings accounts.

Community and Member Impact

• Continued investing in both its members and the communities it serves. During 2025, PenFed and the PenFed Foundation donated more than $1.3 million to 65 charitable organizations supporting veterans, military families, and children facing life-threatening illnesses.

Providing Excellent Member Service Through AI Adoption

Throughout PenFed's over 90-year history, the credit union has consistently embraced technological change to better its members. PenFed is already leveraging AI to summarize calls for reference during future conversations and to respond more efficiently to member questions on "hold" and improving the accuracy of responses.

"At PenFed we see generative AI as an exceptionally smart 'coach' that can sharpen our skills, boost our performance, and help us achieve stronger results for our members in the form of great savings rates and lower costs on loans coupled with excellent member service," said Schenck.

About PenFed Credit Union 
Established in 1935, Pentagon Federal Credit Union (PenFed) is one of America's largest federal credit unions, serving nearly 2.8 million members worldwide with $29 billion in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, student loans, and a wide range of other financial services with members' interests always in mind. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook and follow us @PenFed on X. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer. 

SOURCE PenFed Credit Union